Reforming the Housing Companies Act:

Transkriptio

1 Research Institute for the Languages of Finland Reforming the Housing Companies Act: What is possible in Legal Language in the name of comprehensibility Aino Piehl Legal Language: transparent & efficient 22nd November,

2 Research Institute for the Languages of Finland (1976) Language Planning Department for Finnish (1945): Advice about usage of standard literary Finnish Plain Language for officials Language Boards: Finnish Language Board Swedish Language Board Language Boards for Saami, Romani and Finnish Sign Language

3 Plain Official Language Committee on Administrative Language 1979 Government Decision on Administrative Language 1982 Administration Act 2003: Public authorities shall use appropriate, clear and intelligible language.

4 Plain Language in Law Better Regulation Programme 2006: Principle 2. Regulation must be clear and comprehensible. The most significant legislation concerning individuals and businesses must be so implemented that there is as little need as possible to seek official assistance or to engage other expert advisors.

5 Plain Language in Law Legal Drafter s Manual 1997 Rule of 3: No more than 3 paragraphs in a section, 3 sentences in a paragraph, 3 clauses in a sentence.

6 Reform of Housing Companies Act Almost 50 % of Finnish people live in apartments that are parts of housing companies. Residents are shareholders in the company. Shareholders meeting decides on how the company is run.

7 Reform of Housing Companies Act Ministry of Justice wants the law be as comprehensible as possible. Research Institute for the Languages of Finland * proposes changes to the draft law * investigates what types of changes are acceptable in law texts.

8 The stages of a law drafting project 1 Preliminary preparation 2 Principal preparation 3 Comments 4 Continued preparation 5 Translation 6 Revision 7 Preparation for presentation 8 Consideration by the Government

9 Types of proposed changes We proposed changes making the sentence structure less complicated (nominalizations to clauses or sentences) the information structure more suitable the vocabulary and phraseology more accessible the information content sufficient the location of information more suitable to non expert readers

10 Most frequently proposed changes Majority of our proposals concerned sentence structure vocabulary and phraseology information content

11 Acceptance of proposed changes Most often accepted were our proposals to change sentence structure information structure vocabulary and phraseology In fewer cases changes to information content location of the information word order were accepted.

12 Example 1, accepted proposal, sentence structure Original text: Modifying the articles of association A shareholder is entitled to have any stipulation in the articles of association that is unreasonable in its effect amended so as to eliminate this effect. Osakkeenomistajalla on oikeus saada yhtiöjärjestykseen sisältyvä kohtuuttomuuteen johtava määräys muutetuksi niin, että kohtuuttomuus poistuu. A shareholder is entitled to have any in the articles of association included, in its effect unreasonable stipulation amended so as to eliminate this effect.

13 Example 1, accepted proposal, sentence structure Proposal: If any stipulation in the articles of association is unreasonable in its effect, a shareholder is entitled to have it amended so as to eliminate this effect.

14 Example 2, rejected proposal, sentence structure Original text: Housing company offence Whosoever deliberately 1) violates the provisions on the drafting of the statement of an approved auditor, as referred to in chapter 24, section 4, or chapter 25, section 4; 2) violates the protection of the shareholders or the creditors by distributing the assets of the company in contravention of / contrary to the provisions of This Act; or 3) grants a money loan or security contrary to chapter 11, section 8, shall be convicted, unless the act is of minor significance or subject to a more severe penalty elsewhere in the law, of a housing company offence and sentenced to a fine or to imprisonment for at most one year.

15 Example 2, rejected proposal, sentence structure Asunto-osakeyhtiörikos Joka tahallaan 1) rikkoo hyväksytyn tilintarkastajan 24 luvun 4 :ssä tai 25 luvun 4 :ssä tarkoitetun lausunnon laatimista koskevia säännöksiä, 2) osakkeenomistajan tai velkojien suojaa loukaten jakaa yhtiön varoja tämän lain säännösten vastaisesti, taikka 3) antaa rahalainan tai vakuuden 11 luvun 8 :n vastaisesti, on tuomittava, jollei teko ole vähäinen tai siitä muualla laissa säädetä ankarampaa rangaistusta, asuntoosakeyhtiörikoksesta sakkoon tai vankeuteen enintään yhdeksi vuodeksi.

16 Example 2, rejected proposal, sentence structure Proposal: Housing company offence A person shall be convicted of a housing company offence, and sentenced to a fine or to imprisonment for at most one year, if he or she 1) violates the provisions ( ), 2) violates the protection ( ), 3) grants a money loan ( ), These provisions shall not apply, if the act is of minor significance or subject to a more severe penalty elsewhere in the law.

17 Example 2, rejected proposal, sentence structure Asunto-osakeyhtiörikos Asunto-osakeyhtiörikoksesta on tuomittava sakkoon tai enintään yhden vuoden vankeuteen se, joka tahallaan 1) rikkoo hyväksytyn tilintarkastajan 24 luvun 4 :ssä tai 25 luvun 4 :ssä tarkoitetun lausunnon laatimista koskevia säännöksiä. Tätä säännöstä ei sovelleta, jos teko on vähäinen tai jos teosta muualla laissa säädetään ankarampi rangaistus.

18 Example 3, accepted proposal, information structure Original text: Protesting a decision by the shareholders meeting If a shareholders meeting decision has not been taken in the proper manner a shareholder may bring a suit against the company to have the decision declared invalid or to have it changed. The suit shall be brought within three months of the decision having been taken. If a shareholder has had some acceptable reason for delay, and allowing the decision to remain in force would obviously be unreasonable for the shareholder, the suit may be brought at the latest within one year of the decision having been taken.

19 Example 3, accepted proposal, information structure Proposal: The suit shall be brought within three months of the decision having been taken. The suit may, however, be brought at the latest within one year of the decision having been taken, if a shareholder has had some acceptable reason for delay, and if allowing the decision to remain in force would obviously be unreasonable for the shareholder.

20 Original text: Example 4, accepted proposal, vocabulary Entry of changes in the share register Any acquisition of title of which the company is notified by a recipient of a share and any other change that affects some matter in the share register shall be entered in the share register without delay as soon as reliable proof thereof has been provided. Proposal: Any transfer of ownership Muutosmerkinnät osakeluetteloon Osakkeen saajan yhtiölle ilmoittama saanto ja muu muutos, joka koskee osakeluettelossa olevaa seikkaa, on viivytyksettä merkittävä osakeluetteloon, kun siitä on esitetty luotettava selvitys. Osakkeen saajan yhtiölle ilmoittama omistusoikeuden siirto

21 Original text: Example 5, rejected proposal, vocabulary The permit decision of the State Provincial Office shall be enforceable without the power of law. Lääninhallituksen päätös voidaan panna täytäntöön lainvoimaa vailla olevana. Proposal: The permit decision of the State Provincial Office shall be enforceable regardless of appeal. Lääninhallituksen päätös voidaan panna täytäntöön, vaikka muutoksenhaku siitä olisi kesken.

22 Example 6, rejected proposal, information content Original text: Redemption clause Before it has been determined whether the right of redemption is to be exercised, the acquirer of the share shall have no shareholder rights in the company except for the right in the event that assets are distributed and the pre-emptive right in a share issue. Ennen kuin on käynyt selville, käytetäänkö lunastusoikeutta, ei sillä, jolle osake on siirtynyt, ole yhtiössä muuta osakkeeseen perustuvaa oikeutta kuin oikeus hallita huoneistoa sekä oikeus varoja jaettaessa ja etuoikeus osakeannissa.

23 Example 6, rejected proposal, information content Proposal: Redemption clause Before it has been determined whether the right of redemption is to be exercised, the acquirer of the share shall have no shareholder rights in the company except for the right to payment in the event that assets are distributed and the pre-emptive right in a share issue. Ennen kuin on käynyt selville, käytetäänkö lunastusoikeutta, ei sillä,jolle osake on siirtynyt, ole yhtiössä muuta osakkeeseen perustuvaa oikeutta kuin oikeus hallita huoneistoa sekä oikeus osuuteen varoja jaettaessa ja etuoikeus osakeannissa.

24 Example 7, accepted proposal, information content Original text: A board member is entitled to convene a meeting in cases referred to in chapter 12, section 3. Hallituksen jäsenellä on oikeus kutsua yhtiökokous koolle 7 luvun 12 :n 3 momentissa tarkoitetussa tapauksessa. Proposal: A board member is entitled to convene a meeting, if the there is reason to believe that the board no longer has any other Members. Hallituksen jäsenellä on oikeus kutsua yhtiökokous koolle, jos hänellä on syytä olettaa, ettei hallituksessa ole enää muita jäseniä.

25 Example 8, accepted proposal, EU phrase Original text: information about previous shareholders can only be kept and processed for statistical purposes or for the purposes of historical or scientific research aiempaa omistajaa koskevia tietoja saa säilyttää, käyttää tai muutoin käsitellä vain historiallista tai tieteellistä tutkimusta tai tilastointia varten Proposal: information about previous shareholders can only be kept and processed for the purposes of scientific research or writing the history of the company and for statistical purposes aiempaa omistajaa koskevia tietoja saa säilyttää, käyttää tai muutoin käsitellä vain tieteellistä tutkimusta, yhtiön historian kirjoittamista tai tilastointia varten.